Moving Averages Fluctuations:
The highest trading profits are generally made in strongly trending markets, and the best way to detect trends, and changes in trends, is by the use of moving averages. Moving averages are average prices of a security or index over a specific time interval that is continually updated. Because prices are averaged, the daily fluctuations are dampened into a smoother line that better represents the current trend. The strength of the trend is indicated by the slope of the moving average, especially longer-term moving averages. Moving averages are also used in other technical indicators, such as Bollinger Bands, envelopes, and directional movement indicators.
Because moving averages are based on data in a preceding period, they are lagging indicators. They can only indicate a trend that is already in place. Moving averages based on shorter time spans more closely reflect the underlying current trend, but they are also more sensitive to the volatility of the markets, which can generate many false signals. To minimize false signals, especially in a whipsaw market that trades within a narrow range, multiple moving averages of different time spans are used together.
nLIGHT (LASR) stock moved below -0.93% in contrast to its 20 day moving average displaying short-term negative movement of stock. It shifted 0.27% up its 50-day simple moving average. This is showing medium-term bullish trend based on SMA 50. The stock price went below -30.73% from its 200-day simple moving average identifying long-term declining trend.
nLIGHT (LASR) settled with change of -1.60% pushing the price on the $19.68 per share in recent trading session ended on Thursday. The latest trading activity showed that the stock price is 21.11% off from its 52-week low and traded with move of -54.89% from high printed in the last 52-week period. The Company kept 32.82M Floating Shares and holds 36.99M shares outstanding.
The company’s earnings per share shows growth of 220.90% for the current year and expected to arrive earnings growth for the next year at 21.34% . Analyst projected EPS growth for the next 5 years at30.00%. The earnings growth rate for the next years is an important measure for investors planning to hold onto a stock for several years. The company’s earnings will usually have a direct relationship to the price of the company’s stock. EPS growth quarter over quarter stands at 78.70% and Sales growth quarter over quarter is at 39.70%.
Shares price moved with -22.37% from its 50 Day high and distanced at 21.11% from 50 Day low. Analyses consensus rating score stands at 2. For the next one year period, the average of individual price target estimates referred by covering sell-side analysts is $27.
The company maintained a Gross Margin of 34.40%. The Institutional ownership of the firm is 90.40% while Insiders ownership is 0.40%. Company has kept return on investment (ROI) at 29.20% over the previous 12 months .
nLIGHT (LASR) stock recent traded volume stands with 463820 shares as compared with its average volume of 502.3K shares. The relative volume observed at 0.92.
Volume is simply the number of shares traded during a specified time frame (e.g., hour, day, week, month, etc). The analysis of volume is a basic yet very important element of technical analysis. Volume provides clues as to the intensity of a given price move. Low volume levels are characteristic of the indecisive expectations that typically occur during consolidation periods (i.e., periods where prices move sideways in a trading range). Low volume also often occurs during the indecisive period during market bottoms. High volume levels are characteristic of market tops when there is a strong consensus that prices will move higher. High volume levels are also very common at the beginning of new trends (i.e., when prices break out of a trading range). Just before market bottoms, volume will often increase due to panic-driven selling.
The current ratio of 9.1 is mainly used to give an idea of a company’s ability to pay back its liabilities (debt and accounts payable) with its assets (cash, marketable securities, inventory, accounts receivable). As such, current ratio can be used to make a rough estimate of a company’s financial health. The quick ratio of 7.7 is a measure of how well a company can meet its short-term financial liabilities with quick assets (cash and cash equivalents, short-term marketable securities, and accounts receivable). The higher the ratio, the more financially secure a company is in the short term. A common rule of thumb is that companies with a quick ratio of greater than 1.0 are sufficiently able to meet their short-term liabilities.
The long term debt/equity shows a value of 0.08 with a total debt/equity of 0.08. It gives the investors the idea on the company’s financial leverage, measured by apportioning total liabilities by its stockholders equity. It also illustrates how much debt the corporation is using to finance its assets in relation to the value represented in shareholders’ equity.
David Culbreth – Category – Business
David Culbreth is a self-taught investor that has been investing in equities since she was a senior in college and continues to invest. He is extremely devoted to demystifying investing terminology for new investors.
David Culbreth is a senior author and journalist. He has more than 5 years of experience in institutional investment markets, including fixed income, equities, derivatives and real estate. David has a Bachelor in Business Administration with a major in Finance. He bought his first stocks in a private business at age 15 and made his first public stock trade at 23. He has always been interested in the stock market and how it behaves.
As the dad of two children, he’s made saving money and investing for them a high priority. Over many years of investing, he has made some wise choices and he’s made many mistakes. But he’s learned from both. Mr. David observations and experience give him the insight to stock market patterns and the investor behaviors that create them.